A Project on Customer Satisfaction of Mapro Foods Ltd.
By Poonam.M.Deshmukh Submitted to
University of Pune In partial fulfillment of the requirement for the award of the degree of Master of Business Administration (MBA)
Through MBA Department Progressive Education Society’s Modern College of Engineering, MBA Department, Pune (2013-2015)
ACKNOWLEDGEMENT
I am highly indebted to Mapro Products Ltd. for giving me this opportunity to do my internship project in their esteemed organization. It has contributed immensely to my learning. I would like to thank my external guide, Mr.Ruturaj.Chavan for giving me the required support in completing my project. My profound gratitude towards our HOD, Prof. Dr. Shubhangi Walvekar for giving me valuable guidance, suggestions and advice without which this project could not have been completed. I would also like to thank my internal guide Dr. Deepali Choudaki for giving me the necessary insight into my study.
Poonam Deshmukh
2
INDEX
Sr. No.
Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Appendix I
Contents Acknowledgement Executive Summary Introduction Industry Profile Company Profile Research Methodology Theoretical Background Objectives ,scope and limitations Data Analysis and Interpretation Findings and Recommendations Conclusion Bibliography Questionnaire
EXECUTIVE SUMMARY
3
Page No. 2 4 9 11 15 26 30 39 41 53 55 57 59
PROJECT TITLE : “A STUDY OF CUSTOMER SATISFACTION FOR MAPRO FOODS LTD IN KOLHAPUR CITY.”
OBJECTIVE: 1. To study the satisfaction level of customer for Mapro Food Products in Kolhapur City. 2. To understand the customers’ expectations with respect to quality, taste and preference for Mapro Food products. 3. To study the market share of Mapro Food Products at Kolhapur region.
Hypothesis: 1. Customer are satisfied with the quality, taste and price offered by Mapro Foods. 2. Mapro Foods have acquired maximum market share as compared to its Competitors in the Kolhapur region.
RESEARCH METHODOLOGY: The study is based on primary as well as secondary data. The primary data is collected through personal interviews of customers visiting stores. The Secondary is collected from residential areas and online samples. Sampling Methods:-Non probability convenience sampling method. Area: - KOLHAPUR Sample Size: - Total sample size was 100 Research Instrument: - Questionnaire and observation
4
CONCLUSION:
Most of the customers were satisfied but changes are required according to the changing scenario as advertisement has a great impact in the working of the
company. More advertising is required to increase the brand recognition which will
promote more selling of the products. Most of the customers were satisfied with the taste of the Mapro products. Mapro Company has to come up with new products so that company can
attract more customers and retain existing customers. Price can be comparatively lowered making it feasible for the middle class
strata to purchase the products. Promotions and promotional offers should be taken up in order to gain
customers attention. Overall good review of all the products.
SUGGESTIONS:
Company should focus on the advertisement other than Mahableshwar (which
is its producing area) so that it helps to increase their sales. Company should focus on the replacement policy .i.e. tampered; expired or
defective products should be replaced immediately. Company should focus on the packaging of the product i.e. it can change its
packaging after certain period of time and come up with new attractive ideas. Promotional activities should be well planned and conducted in prominent areas like Markets School and colleges Public places Outside super markets
Introductory offers or promotional perks can be inculcated.
Medias like local newspapers (Pudhari, Sakaal), radio (Radio mirchi, etc.), and TV channels must be used. 5
Eye catching banners, hoardings, pamphlets, slogans should be introduced.
LIMITATATIONS OF STUDY: The sample size chosen is limited to 100 only because of time constraint. This study was based purely in Kolhapur. Information given by respondents may or may not be correct. The project was undertaken at MAPRO, the data was confidential so there were certain barriers in accumulating the data. The disclosure of data from their side was limited.
Learning through Project: It has been great pleasure to work on this exciting and challenging project. This project provide knowledge about the satisfactory level of customer for Mapro Foods Products. This will provide better opportunity and guidance in future project. It has helped to conduct the research a scientific way. The researcher has provided the inputs in designing, the questionnaire which is an important tool of the research
UTILITY OF STUDY This research help to know awareness about Mapro Foods Products in Kolhapur City. The suggestion given by the researcher to organization to focus more on the promotional tools to wide business in other areas. Market penetration through promotional activities to expand market in other parts of countries. 6
CHAPTER .1 INTRODUCTION
7
RATIONALE OF THE STUDY To know the market for the growth and success of MAPRO PRODUCTS and to understand the satisfaction level. The study was also conducted to know the market share of Mapro products. The actual project work consist of market research of customer satisfaction through personal interview in selected shops and in selected residential areas of Kolhapur. There
well
in
all
Mapro
products
assigned
to
me
market
study-
jams,Jellies,crusher,squash,restores,mazanna,falero,bars and jellies,toppings,lounge. The area given to me was Kolhapur city and the duration of the project was 2 months. I was design and questionnaire under the guidance of area manager.
8
CHAPTER 2 INDUSTRY PROFILE
9
10
FMCG industry alternatively called as CPG (consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The fast moving consumer goods (FMCG) is those consumables which are normally consumed by the consumer at a regular interval.
FMCG industry economy The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of USD 13.1 billion. FMCG sector in India is estimated to grow 60 % by 2010.
COMMON FMCG PRODUCT Some common FMCG product category include food and dairy products, glass ware , paper products , pharmaceuticals, consumer electronics , packaged food products, plastic goods, printing and stationery , household products, photography, drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc.
Market potentiality of FMCG industry Some of the merits of FMCG industry which made this industry as a potential one , are low operational costs , strong distribution networks presence of renowned FMCG companies. Population growth is another factor which is responsible behind the success of the industry.
11
Leading FMCG companies. Some of the well-known FMCG companies are COCA COLA, HUL, P & G, GODREJ, DABUR, ITC, ETC.
Market overview Total market size.
Indian FMCG sector is the fourth largest sector in the economy worth a total
market size of USD 18 billion as of 2007. By 2015, the sector is predicted to scale upto USD 33.4 billion. The sector generates five percent of total factory employment in the country and is creating employment for 3 million people especially in small town and rural India, INDIAS FMCG MARKET SIZE (IN USD BILLION)
12
MAJOR COMPETITORS: Mapro Foods Pvt. Ltd is in food business which is highly and rapidly growing business & has few competitors also. Some of them are listed below: Haldiram: Manufacturing of Syrups & exports of the syrups have increased by 20% since 2003. KISSAN: In jams, Mapro Foods Pvt. Ltd is close second to Kissan in market share. Malas: It manufactures jam, crush, squash, cordials, syrups which is same as the manufacturing of Mapro Foods Pvt Ltd. Manama: Their range of products consists of cordials, syrups, fruit and chocolate dessert toppings.
13
CHAPTER.3 COMPANY PROFILE
14
Introduction: Mapro Foods Pvt. Ltd is the manufacturers and resellers of the natural fruit products. It is one of the growing companies of India which is situated at Panchgani Mahableshwar Road. It produces jams, confectionaries, squashes, jellies and many more fruit products. It is the fruit processing business over more than forty years and it is known for the innovation and quality in the industry. The Chief Executive Officer of the company is Mayur Vora. It has its manufacturing units in Panchgani, Wai, and Gurgaon. It is most likely to spread its operation in Delhi and Pathankot. There are more than 500 local employees in the company and about 100 contract laborers. Mapro Foods is a well-known brand in jams and squashes. It is a family business started in 1959by the Vora family, making jams from strawberries and raspberries. Mapro was one of the first to use traditional ingredients to make plant-based beverage concentrates such as strawberry crush and rose syrup. The company was also the first in India to introduce pectin jellies and fruit sweets.
VISION AND MISSION OF THE ORGANIZATION: The organization aims to be a global player in the food processing market. Keeping this in mind, they have continuously growing market and are currently prevalent in countries like FIJI, MAURITIUS, OMAN, RUSSIA,UGANDA and, UAE, Mapro, meanwhile, is all set to significantly expand business, country. The expansion will also see production capacities go up from the current 100 tons per day to 200 tones by the next fiscal the company, whose product are available in West Asia, part of Africa and the US in a limited way, is planning to capture the overseas markets with a range of fruit products, from frozen to ready- to-eat. “The idea is to become the least-cost producer of certain products in the global market,”said the CEO of Mapro food limited. With the help of this research study, I would like to highlight the working of a particular
manufacturing
concern.
The 15
company
is
called
as
‘MAPRO
INDUSTRIES’. This industry was chosen because of its reputation and potential for becoming a world class organization. Over 50 years ago, in 1959, the Company had its humble beginnings in the hill-town of Panchgani, near Mahableshwar, when a businessman named Kishore Vora a pharmacist by profession, decided to make some strawberry jam. He then went on to develop innovative products such as jelly sweets, fruit cubes with fruit juice and rose syrups with rose petals – all for the first time in country. His vision has been taken forward, thereby transforming the region around Mahableshwar and Panchgani, the erstwhile sleepy hill stations of Maharashtra, into a flourishing fruit processing zone started with a capacity of 10 MT of processed fruit products a year, the Company today has a processing capacity of about 12,000 MT per Year with its factories in the Shendurjane village of Satara district, Panchgani town, Gureghar village of Mahableshwar tehsil .I am deeply thankful to our college authorities for giving us Opportunity to visit this company.
16
PRODUCTS OF MAPRO:
17
Crush Jams Restores Toppings Lounge Mazaana Squash Falero Coolz Bars and jellies
Marketing strategies: 1) Demand Drivers: MAPRO being a Jam producing company needs to concentrate on the demand of the consumers. The first thing which an industry should take care of is the demand of the consumers. Thus, MAPRO also sees to it that what actually consumers are demanding from them and production process is being carried out accordingly. Thus, because of demand of the various customer’s the new products are been introduced by the industry. There is a high amount of competition which is there in the market, and if consumers’ demands and wants are not taken into consideration, then growth of any of the industry can be very much affected out of it.
2) Issues and Concerns: The next step which they take for their marketing is that of issue and concerns. Here MAPRO sees that what actually is needed by the consumers and thus work accordingly. MAPRO is been concerned only with the demand of the consumer. MAPRO is the company which has to handle lots of the competition in the market, MAPRO being Maharashtra based, so there are various other companies also, which are from Maharashtra. And thus, because of this reason every company will try to fulfill the customer's wants as soon as possible. MAPRO being aware of it tries to see each and every customer’s demand and works accordingly. The various different type of complaints are also been taken into account.
3) Focusing on the customers: The third step which is been taken by the MAPRO is that to focus on the consumers. In each and every field, the consumers are been given high importance. As it is known that customer’s are the King of the market. If the customers are not been satisfied, then there would be no profit to the firm and thus, because of this reason the goodwill of any of the 19
industry is very much affected. Thus, because of this reason a complete attention is been given to the consumers. For the satisfaction of the consumers various new products are being introduced.
4.) Social commitments:
The industry has not forgotten that it is a part of the society and thus because of that
reason various social activities are been taken into consideration. MAPRO sees to it that because of its production process no harm is been done to any of the other field.
Thus, there are some of the marketing strategies which are been undertaken by the
MAPRO industry. With the help of these strategies only they try to attract more consumers and tries to provide full satisfaction to them. They do not concentrate much on the marketing of their products, but still with this some marketing strategies only it tries to provide complete satisfaction to their consumers.
SWOT ANALYSIS:-
1.)
a.)
Strength:MAPRO with its three plants distribute its products all over India and also they are
exporting the products to foreign countries.
b.)
The organization has a unique advantage of its strategic location as its strategic
location is based in Maharashtra state.
c.) All products of MAPRO Foods are available all over India.
d.)
Today MAPRO is a symbol of high quality products sold at reasonable prices, the
genesis of a vast co-operative network triumph of indigenous technology, the marketing savvy of a farmer’s organization.
e.)
In the near future they have planned to maximize their productivity by maximum
utilization of scarce resources. 20
2.)
Weakness:-
a.)
MAPRO Foods does not export their products to all over the world.
b.)
The price of MAPRO products is high. That’s why the lower class of people can’t
buy it.
c.)
The raw material which they are using in their production process is perishable
therefore there may be spoilage of raw material 3.) Opportunities:-
a.) As it is being known that the products are not been sold throughout India, so efforts
are been made and instead of selling at local level, the products can be sold at national level also.
b.)
Then more new products can be introduced, and thus, because of that their goodwill
can be increased in the market .If more new products are been introduced, then more new customers will get attracted towards it and thus it will help to increase more of their profits.
c.)
If the marketing strategies are increased and some customer oriented strategies are
incorporated then it would be very much helpful for the industry. If the proper marketing of the product is done, then the customers will come to know about the different products. Thus it can be said that if the proper marketing is not done, then customers are not been attracted towards the new products which are produced.
d.)
The various different type of research process should be carried out and efforts
should be made to produce new product, as per the research taking place.
4.)
Threats:21
a.) competitors: -
Mapro Foods Pvt. Ltd is in food business which is highly and rapidly growing business
& has Few competitors also. Some of them are listed below:
Manama: Their range of products consists of cordials, syrups, fruit and chocolate dessert b.)
There are also many brands which are available in each and every city and thus, this
gives huge competition. c.) Price can be maintained by making affordable for the middle class and lower strata
of people. Mapro Foods Pvt. Ltd uses all types of employees i.e. Skilled, semi-skilled and unskilled labor . Skilled Labor Means the one who has higher level of qualifications as well as the experience. Semi-skilled labors Means they have less qualifications and the experience is also comparatively less and the Unskilled labor May not have any qualification or experience. In the higher level of management highly skilled people work and at the middle level there may be a combination of skilled as well as the semi-skilled laborers is there and at the lower level management there are more number of unskilled laborers. However at all levels of the management there must be a minimum technical as well as conceptual knowledge about the field. 22
COMPAN Y PROFILE: Mapro Foods Pvt. Ltd is fruit processing company. It was founded by visionary Shri Kishore Vora. It came into existence in 1959 A. D. The company used to produce jams from strawberries and raspberries when it was established but later it started manufacturing various other products like crushes, squash, confectionaries, sweets, jellies and many more products. The company is one of the leading companies in India. The Managing Director of the company at present is Mayur Vora. The company is situated at Chesson Road, Mahableshwar, Panchgani. The plant is BVQI certified and provided with facility of state of art food park and cold storage. Mapro Foods Private Limited is the flat organization where management works along with their technical and sales functionaries to achieve the vision and mission of MFPL. Mission of MFPL: Mapro will develop, produce, package & sell food products, with high regards for safety, nutrition & taste, which we can confidently give to our customers by implementing and continually improving Quality Management system & food safety management system to meet & exceed customer’s expectations.
History of MFPL:
23
Over 40 years ago, in small town of Panchgani, near Mahabaleshwar, a businessman named Kishor Vora decided to make some Strawberry Jam. Today his 'Hobby' has borne fruit in the shape of Mapro one of the most modern, hygienic, quality- conscious Jamand Fruit Products Manufacturing Concerns in Western India. Mr. Vora could have rested easy on success of his Fruit recipe. But he wanted to on develop innovative ideas such as Vegetarian Jelly Sweets, Fruit Cubes with Fruit Juice and Rose Syrups with Rose Petals. All for the first time in country. Mapro does not use advertising medium like press, radio and television to propagate its product but the taste of product and nutritional value, and uniqueness result in repeat sales. Today Mapro is leading supplier of tasty as well as nutritious fruit product to the International market. Mapro is known to care for its employees. Mapro is a home where there is mutual understanding between employee and employer like members in the family. It features a blend of hard work and dedication. It is now in the process of certification under ISO 9000.Most of Mapro's business is largely concentrated in the Western regions of India. Currently, Mapro exports its products to about 12 countries through merchant distributors; these account for less than 10 per cent of its total sales. It has its manufacturing units in Panchgani, Wai, Gurgaon. The company is going to open its manufacturing units in Delhi and Pathankot lately. The main market segment currently is in Maharashtra and Gujarat. It is also concentrating in expanding its market to the other cities like Kanpur, Lucknow, and in Punjab. The annual growth rate of the company is more than 50%. It earns 40%-50% profits from the sales of its products. The leading product of Mapro is Rose syrup (made from the rose petals and their extracts).For the production of the products the company buys the fruits from both the sectors i.e. the local farmers and market and import from other countries as well. The machineries and other raw materials are imported from various countries like Egypt, China, New Zealand, Australia, etc.
24
ORGANIZATION CHART. Purchase Production Research and Development Department Department Department
Board of Directors Chairman
Chief Executive Officer Marketing
Finance
Department
Department
25
Human Resource Department
Purchase Production Research and Development
Manager
Manager
Marketing
Finance
Manager
Manager
Human Resource Manager
Workmen
CHAPTER. 4 RESEARCH METHODOLOGY
26
Definition: “A Research is a careful investigation or inquiry, especially through search for new facts in any branch of knowledge”.
Meaning: Research is an active, diligent, and systematic process of inquiry aimed at discovering, interpreting, and revising facts. This intellectual investigation produces a greater knowledge of events, behaviors, theories, and laws and makes practical application possible. The term research is also used to describe an entire collection of information about a particular subject, and is usually associated with the output of science and the scientific method. Research Methodology is a systematic method of discovering new facts or verifying old facts, their sequence, inter-relationship, casual explanation and the natural laws which governs them. Research Methodology explained by Redman and Mory are as follows: “systematized effort to gain new knowledge.”
27
Research Methodology is original contribution to the existing stock of knowledge making for its advancement. It is the purest of truth with the help of study, Observation, comparison and experiment. In short also covers the systematic method of finding solution to a problem is research. It also covers the systematic approach concerning generalization and the formulation of the theory. Different stages involved in research consists of enacting the problem, formulating a hypothesis, collecting the facts or data, analysing the facts and reaching certain conclusion either in the form of solution towards the concerned problem or in generalization for some theoretical formulation.
Sources of Data: In Research Methodology mainly Data plays an important role. This study is conducted by collecting and analyzing the data from primary and secondary sources. a) Primary Data. b) Secondary Data. Primary Data: Primary Data is the data, which is collected with the help of typed questionnaires. Primary data was collected by administering the questionnaire to the marketing advisors of Mapro Foods Ltd.
Secondary Data: Secondary Data is collected from the various books, magazine, reports, company manual, company site, etc. The data was also collected from the organization and sales representatives. The various information is taken out regarding that subject as well other
28
subject from various sources. The last years data stored is also be secondary data. This data is kept for the internal use of the organization.. Secondary data was collected from the books, websites and through the interaction with the individuals in the organization.
Sampling: A sample is a part of population. The sample should be representative of the population and the information obtained must be reliable. In any survey where reliability is desired, the errors and variances have to be controlled, measured and interpreted. Sample Unit: Mapro Product Customers Sample Frame: household customers and store walk-in customers Kolhapur District Simple Random sampling: Sample Size: Total 100 respondents were conveniently selected, who are the customers of Mapro food products.
Learning through Project: It has been great pleasure to work on this exciting and challenging project. This project provide knowledge about the satisfactory level of customer for Mapro Foods Products. This will provide better opportunity and guidance in future project. It has helped to conduct the research a scientific way. The researcher has provided the inputs in designing, the questionnaire which is an important tool of the research
Contribution to the Organization:
29
This research help to know awareness about Mapro Foods Products in Kolhapur City. The suggestion given by the researcher to organization to focus more on the promotional tools to wide business in other areas. Market penetration through promotional activities to expand market in other parts of countries.
CHAPTER . 5 THEROTICAL BACKGROUND
30
CUSTOMERS Mapro Foods Pvt. Ltd has customers from a wide range of people. Mostly the customers of the company are children as the products of Mapro are targeted for this group only i.e. Mapro produces chocolates and jellies and jams and many more which is mostly liked by the children only. But this doesn’t It mean that other age groups are not covered.
CONCEPT OF CUSTOMER: Customer satisfaction represents a modern approach for quality in enterprises and organisations and serves the development of a truly customer-focused management and culture. Measuring customer satisfaction offers an immediate, meaningful and objective feedback about client preferences and expectations. In this way, company performance may be evaluated in relation to a set of satisfaction dimensions that indicate the strong and the weak points of a business Organisation. This project presents an original customer satisfaction survey in the food & beverages sector. The implemented methodology is based on the principles of multicriteria analysis and preference disaggregation modelling. The most important results are focused on the determination of the critical service dimensions and the segmentation to customer clusters with distinctive preferences and expectations. CUSTOMER: A “Customer” is one who purchases a product or service from a particular organization. One thing that we are all customer, in fact everybody in this world is a customer. Every day in our life we buy and consume an incredible variety of goods and services. However, we all have different tasks, likes& dislikes and adopt different patterns while making purchase decision. Each customer is unique and this uniqueness is reflected in competitive behaviour and pattern and process of purchase. 31
Customer satisfaction: Customer satisfaction is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. "Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers’ expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. . . . These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective. Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representative measures of satisfaction. "In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget motel—even though its facilities and service would be deemed superior in 'absolute' terms.
Purpose: Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold.
32
1."Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company’s goods and services. "Although sales or market share can indicate how well a firm is performing currently, satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will make further purchases in the future. Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the extremes." On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become return customers and might even evangelize for the firm. (A second important metric related to satisfaction is willingness to recommend. This metric is defined as "The percentage of surveyed customers who indicate that they would recommend a brand to friends." When a customer is satisfied with a product, he or she might recommend it to friends, relatives and colleagues. This can be a powerful marketing advantage.) "Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt the firm by making negative comments about it to prospective customers. Willingness to recommend is a key metric relating to customer satisfaction
Definition: “Customer
satisfaction,
is
defined
as
a business
term,
it
is
the
measurement of how product and services supplied by a company meet or surpass customer expectation
Measuring Customer satisfaction: Managing customers’ satisfaction efficiently is one the biggest challenge an organization face. The tools or methods to measure customer satisfaction needs to be defined sophisticatedly to fulfill the desired norms. There are following methods to measure customer satisfaction:
33
1. Direct Methods: Directly contacting customers and getting their valuable feedback is very important. Following are some of the ways by which customers could be directly tapped: a. Getting customer feedback through third party agencies. b. Direct marketing, in-house call centers, complaint handling department could be treated as first point of contact for getting customer feedback. These feedbacks are compiled to analyze customers’ perception. c. Getting customer feedback through face to face conversation or meeting. d. Feedback through complaint or appreciation letter. e. Direct customer feedback through surveys and questionnaires. Organizations mostly employ external agencies to listen to their customers and provide dedicated feedback to them. These feedbacks needs to be sophisticated and in structured format so that conclusive results could be fetched out. Face to face meetings and complaint or appreciation letter engages immediate issues. The feedback received in this is not uniformed as different types of customers are addressed with different domains of questions. This hinders the analysis process to be performed accurately and consistently. Hence the best way is to implement a proper survey which consists of uniformed questionnaire to get customer feedback from well segmented customers. The design of the prepared questionnaire is an important aspect and should enclose all the essential factors of business. The questions asked should be in a way that the customer is encouraged to respond in an obvious way/. These feedback could received by the organizations can be treated as one of the best way to measure customer satisfaction. Apart from the above methods there is another very popular direct method which is surprise market visit. By this, information regarding different segment of products and
34
services provided to the customers could be obtained in an efficient manner. It becomes easy for the supplier to know the weak and strong aspects of products and services. 2. Indirect Method: The major drawback of direct methods is that it turns out to be very costly and requires a lot of pre compiled preparations to implement. For getting the valuable feedbacks the supplier totally depends on the customer due to which they lose options and chances to take corrective measure at correct time. Hence there are other following indirect methods of getting feedback regarding customer satisfaction: a. Customer Complaints: Customer’s complaints are the issues and problems reported by the customer to supplier with regards to any specific product or related service. These complaints can be classified under different segments according to the severity and department. If the complaints under a particular segment go high in a specific period of time then the performance of the organization is degrading in that specific area or segment. But if the complaints diminish in a specific period of time then that means the organization is performing well and customer satisfaction level is also higher. b. Customer Loyalty: It is necessarily required for an organization to interact and communicate with customers on a regular basis to increase customer loyalty. In these interactions and communications it is required to learn and determine all individual customer needs and respond accordingly. A customer is said to be loyal if he revisits supplier on regular basis for purchases. These loyal customers are the satisfied ones and hence they are bound with a relationship with the supplier. Hence by obtaining the customer loyalty index, suppliers can indirectly measure customer satisfaction.
Customer Satisfaction:
As organizations become increasingly focused and driven by demand the need to get customers loyalty and retain their loyalty is critical. Customer satisfaction is the most effective way to achieve customer loyalty .Customer satisfaction and customer loyalty share many traits. Customer value is customer perception of the ratio of benefits to what
35
he\she gives to obtain these benefits. The customer value trait is framework used to understand what is that customer wants. 1. Perceived product quality 2. Value based pricing 3. Perceived service quality Customers are satisfied when value satisfied meets or exceed expectations. If their exceptions of value are not met, there is no chance of satisfying them. Finding out what customer wants however difficult and complex process. To be able to create and deliver customer value, it is important to understand its components. The benefits customers expect are shaped primarily by how they perceive product and service quality and whether or not their perceptions are valid. Unfortunately customers don’t know to draw a distinct line between product and service and quality. Customers tend to combine product and service attributes together as a part of a total package to which they attach some individual perceived value. Most companies products fall somewhere between pure product and pure service. Managers in charge decide which attributes or tangibles or more important than other according to the needs of their customers. On the risk side of the education, the customers perception and exceptions become the determining factors. Transaction price, life cycle costs and the actual degree of the risk being taken constitutes the three components involved in the risk of buying. The actual price being paid for the product or service at the time of purchase represents the transaction cost. Life cycle costs are the total cost of ownership, which includes operating and service expenses.
Importance of Customer Satisfaction in an Organization: With the increase in customers demand and competition it has become lot more importance to base your entire company on customer service. When doing this one must first realize that every member of your organization plays an active role in customer service. This includes both external and internal customers within your company. In these organizations, top management frequent contacts with external customers. The top management uses consultative participative and supportive management styles to get 36
through the customers. The staff focuses on of its attention on satisfying the customers need. According to Michel N. Bamber CEO, of Marks and Associates Business Growth Specialist, there are six critical steps in establishing and maintaining quality customer service viz: 1) Senior management commitment 2) Measurement and feedback 3) Communication and training 4) Core standards 5) Customer friendly system 6) Reward and recognition These six stages can be applied to any company in growth stage at its life cycle. The process of building your company around customer service is on going and no matter and how good one quality of Customer Satisfaction and Loyalty Customer satisfaction is worthless; this statement was made by Jeffery Gitomer, in his recent book Customer Satisfaction Is Worthless, Customer Loyalty Is Priceless. Gitomer researches and examines the differences between customer satisfaction and loyalty. According to him, loyal customers are happy with their purchase that, they will proactively refer someone to you. The customer walks away with feeling of WOW!! People everywhere in today business world are trying to figure out what is more important customer satisfaction or customer loyalty. Both, practitioners and academics understand that customer loyalty and satisfaction both are linked in extricable. Even through, loyal customer is most typically satisfied; satisfaction does not always translate into loyalty. Marketing concept has been designed by product and service providers in an effort to maximize customer satisfaction. Reported date in 1993 showed that customers satisfaction accounted for 1/3 of revenue received by largest US Research firms. Recently there has been a shift in a research dynasty from satisfaction to loyalty. People are starting to see satisfied customers as being only mediocre. Even through satisfaction and loyalty are 37
linked together and loyal customers seen typically satisfied, satisfaction still represents and unreliable precursor to loyalty. As result of this, Oliver raises two questions. 1) What aspect of the satisfaction response has implications for loyalty? 2) What fraction of the loyalty response is due to this satisfaction component? For these question satisfaction and loyalty must be clearly defined in the post satisfaction study as an evaluation or the perceived discrepancy between prior expectations and actual performance of the product. Recent definition of satisfaction according to Oliver is, the consumer senses that consumption moves out comes again a standard of pleasure versus displeasure. Oliver defines loyalty as a deeply held commitment to re-by or re-patronize preferred product or service consistently in the future there by causing reputed some brand set purchasing despite situation influences and marketing effects having the potential to cause switching behavior. After extensive amount of research, Oliver concludes that satisfaction is necessary step in loyalty. However satisfaction becomes less significance as loyalty begins to set through other mechanisms. In the conclusion to these studies Oliver stakes, the disparity between the pursuit of satisfaction versus loyalty as well as the fundamental contents of the loyalty response, poses several investigates direction for the next wave of post consumption research. All these concepts combine provide the basic model customer value. Customers value the products or services more if the expected benefits seem greater than the expected risks being taken. If expected benefits do not overweight the expected risks. This customer will perceive the product to have a low customer value.
38
CHAPTER . 6 OBJECTIVES, SCOPE AND LIMITATIONS 39
Objectives of the Study: 1. To study the satisfaction level of customer for Mapro Food Products in Kolhapur City. 2. To understand the customers’expectations with respect to quality, taste and preference for Mapro Food products. 3. To study the market share of Mapro Food Products at Kolhapur region 40
Scope of the Study: From this Study, the various reasons due to which customer buy or don’t buy Mapro products can be identified. Customers Preferences towards Mapro products can be understood. The percentage of selling of Mapro products will increase. The customers buying tendency can be understood.
Limitations of the Project: 1. The sample size chosen is limited to 100 only because of time constraint. 2. This study was based purely in Kolhapur. 3. Information given by respondents may or may not be correct. 4. The project was undertaken at MAPRO, the data was confidential so there were certain barriers in accumulating the data. 5. The disclosure of data from their side was limited.
CHAPTER.7
DATA INTERPRETATION AND ANALYSIS
41
1) Purchase of Mapro food products Purchase Mapro
People 42
Yes No
54 46
PURCHASE MAPRO PRODUCTS
4%
YES
NO
96%
Interpretation: From this pie chart it is observed that majority people purchases Mapro products over other products. As we can see that MAPRO is widely consumed and known. 43
2) Quality of Mapro Products
Quality of Mapro Average Good Excellent
People 37 42 21
Quality of Mapro product AVERAGE
GOOD
EXCELLENT
21% 38%
42%
Interpretation: 42% respondents says that the quality of Mapro products is Good, while 37% respondents say that it is average, while 21 % say that its excellent. Here in general the review of quality of MAPRO Products is good.
44
3) The price of the Mapro Product
Price rating Low Moderate High
People 21 62 17
The price of the mapro product LOW
MODERATE
17%
HIGH
21%
63%
Interpretation: 62% respondents say that the price of the Mapro products is moderate, while 21% say it is low and 17% say its high. Hence this helps in price controlling.
45
4)The taste of Mapro products Satisfaction Yes No
People 70 30
40 35 30 25 20 35 15 10 13
5 0
YES
NO
Are you satisfied with the taste of mapro products?
46
Interpretation: 70% people are satisfied with the taste of Mapro products, while 30% are not satisfied. By this result steps should be taken in order to improvise the taste and meet consumers’ expectations. 5) The packaging of the products
Packaging Average Good Excellent
47
People 21 58 21
The packaging of the products EXCELLENT; 21% AVERAGE; 21%
GOOD; 58%
Interpretation: 58% respondents say that the packaging of the Mapro product is good and 21% agree that its excellent. Measures can be taken to develop innovative and more attractive packaging or packaging can be changed every four months to attract consumer. 6) Product of Mapro prefer the most Product preference Jam Fruit crush
People 25 31 48
Bars and jellies Desert topping
27 17
Mapro Product like to prefer JAM
FRUITCRUSH
BARS & JELLIES
17%
DESERT TOPPING
25%
27% 31%
Interpretation: Fruit crush is the most preferred product in the Mapro product range. Whereas 27% people prefer bars and jellies. It is observed that 25 % consumers use jams and 17% prefer dessert topping. 7) Satisfied with the promotion activities done by Mapro
49
Promotions satisfaction Yes No
People 60 40
Satisfied with the promotion activities done by Mapro YES
NO
40% 60%
Interpretation: 60% respondents are satisfied with the promotion activities done by the mapro.Improvisation in the marketing and promotion strategies in order to make the product known to customer and capture majority market.
50
8) Suggest other to buy the Mapro product Will suggest others Yes No
People 81 19
The Mapro product YES
NO
19%
81%
Interpretation: 81% people say that they will suggest Mapro products to others to buy. Steps should be taken to make the product and brand name more famous and prominent in the market.
51
9) Level of satisfaction for the Mapro product & service
Satisfaction Very satisfied Satisfied Dissatisfied Very dissatisfied
People 29 42 19 10
Level of satisfaction for the Mapro product & service VERY SATISFIED
SATISFIED
DISSATISFIED
10% 29%
19%
42%
52
VERY DISSATISFIED
Interpretation: 42% respondents are satisfied with the level of satisfaction while 19% are dissatisfied with the level of satisfaction. The percentage of dissatisfaction should be reduced as it might leaned in degrading of the brand name. Q10)How satisfied are you with Mapro products with respective quality? Very satisfied
Satisfied
Dissatisfied
Neither satisfied nor dissatisfied
53
Satisified Mapro products with respective quality
Dissatisfied; 7
Very Satisfied; 40
Satisifed; 37
Very Satisfied
Satisifed
Dissatisfied
Neither satisfied nor dissatisfied
Interpretation: 40% respondents are very satisfied with the quality of Mapro products while 37% are satisfied with the quality of Mapro products.7% are dissatisfied with the quality of Mapro products and 12% neither satisfied nor dissatisfied with the quality of Mapro products Here in general the review of quality of MAPRO Products is good.
54
Q.11)Please rank the following as per your preference?( (rank is from 1 to 4,where 4 stands for better) KISSAN MAPRO MALAS MANAMA
55
Rank product as per preference
11 42
39
KISSAN
MAPRO
MALAS
MANAMA
Interpretation: 42% respondents are rank Kissan’s products while 39% are preferred Mapro’s products.11% are preferred Malas products and 8% preferred Manama’s products.Company should focus on market shares to earn a profit in order to make the product known to customer and capture majority market.
CHAPTER .8 56
FINDINGS AND SUGGESTIONS
57
Findings: 1. 2. 3. 4. 5. 6. 7. 8.
71% respondents are satisfied with the different range of products. 81% people say that they will suggest Mapro products to others to buy. 63% respondents says that the quality of Mapro products is good. 10% respondents say that they find defect in the packing. Fruit crush is the most preferred product in the Mapro product range. 70% people are satisfied with the taste of Mapro products 94% people are not satisfied with the replacement policy of the Mapro products. Company should focus on the market shares to earn profit.
Suggestions:
Company should focus on the advertisement other than Mahabaleshwar (which is its
producing are) so that it helps to increase their sales. Company should focus on the replacement policy .i.e. tampered, expired or defective
products should be replaced immediately. Promotional activities should be well planned and conducted in prominent areas such
as Markets. School and colleges. Public places. Outside super markets. Introductory offers or promotional perks can be inculcated. Medias like local newspapers (Pudhari, Sakaal), radio (Radio mirchi, etc.), and TV channels
must be used. Eye catching banners, hoardings, pamphlets, slogans should be introduced.
CHAPTER.9 CONCLUSION 58
Conclusion:
Most of the customers were satisfied but changes are required according to the changing
scenario as advertisement has a great impact in the working of the company. More advertising is required to increase the brand recognition which will intern promote
more selling of the products. Most of the customers were satisfied with the taste of the Mapro products. 59
Mapro Company has to come up with new products so that company can attract more
customers and retain existing customers. Price can be comparatively lowered making it feasible for the middle class strata to purchase
the products. Promotions and promotional offers should be taken up in order to gain customers attention. Overall good review of all the products based on satisfaction scale.
BIBLIOGRAPHY
60
Bibliography:
61
1. Kotler P. , (2012) , Marketing Management by, Pearson education, 14th edition , New – Delhi , No.106 2. Kotler P. , (2007), Marketing Management, Pearson Publication, 11th edition, New Delhi. No. 59, 72 3. Kothari. C. R , Garg Gaurav , (2004), Research Methodology (Methods and 4. 5. 6. 7. 8. 9.
techniques) , New age International(P) Limited Publisher New Delhi-110002 , No.114 Zikmund, Babin , (2007) , Essentials of Marketing Research, 3rd Edition, Thomson, Australia. , Indian Publication, No.135, 143 http://www.mapro.com/mapro_history.html , Date:6/07/2014 , time:1.15pm http://www.hospitalitybizindia.com/detailNews.aspx?aid=7833&sid=1 , Date:21/7/2014, Time: 5.00pm http://www.mapro.com/mapro_quality.html,Date:16/088/2014,Time:11.15 http://en.wikipedia.org/wiki/Mapro_Garden,Date:28/08/2014,Time:8.00pm http://businesstoday.intoday.in/story/small-brands-in-india-mapro-foods/1/184742.html, Date:5/09/2014, Time:12.40am
APPENDIX I
62
Questionnaire Q1.
Personal detail: Name:
---------------------------------------------
63
Age: Address: Q.2) Do you purchase Mapro food products?
Yes
No
Q.3) How will you rate quality of Mapro products? Average
Good
Excellent
Q.4). How would you rate the price of the Mapro product? Low
Moderate
High
Q 5).Are you satisfied with the taste of Mapro products? Yes
No
Q6).How will you rate the packaging of the products? Average
Good
Excellent
Q.7).Which product of Mapro do you prefer the most? (Select any 1) Jam
Fruit crush
Bars and jellies
64
Desert topping
Q8).Are you satisfied with the promotion activities done by Mapro? Yes
No
Q9).Will you suggest other to buy the Mapro product? Yes
No
Q10). Please rate your level of satisfaction for the Mapro product & service? Very satisfied
Satisfied
Dissatisfied
Very Dissatisfied
Q11.)How satisfied are you with Mapro products with respective quality? Very satisfied Dissatisfied
Satisfied Neither satisfied nor dissatisfied
Q12.)Please rank the following as per your preference? (rank is from 1 to 4,where 4 stands for better) KISSAN 65
MAPRO MALAS MANAMA
66
67
